If Someone Tells You to Use a Bitcoin ATM, You’re Almost Certainly Being Scammed
A quick PSA. The biggest Bitcoin ATM operator just filed for Chapter 11 because of increased regulation to protect victims. Here’s what every family needs to know today.
If you remember one thing from this post: if someone is telling you to send money through a Bitcoin ATM, it is a scam. Stop. Hang up. Call a family member. Do not put cash in that machine.
Bitcoin Depot, the largest Bitcoin ATM operator in the US, just filed for Chapter 11 bankruptcy (https://www.globenewswire.com/news-release/2026/05/18/3296277/0/en/bitcoin-depot-initiates-voluntary-chapter-11-process-to-facilitate-an-orderly-wind-down-and-sale-of-the-company-s-assets.html).
The numbers tell the story
Last September, DC’s Attorney General sued Athena Bitcoin (https://wjla.com/news/local/dc-attorney-general-schwalb-sues-athena-bitcoin-crypto-atm-cryptocurrency-scams-washington-seniors-fraud-financial-exploitation-hidden-fees-teller-machines-consumer-protection-lawsuit-investigation), another major Bitcoin ATM operator. 93% of deposits into Athena’s seven DC machines over five months were the direct result of scams. The median victim was 71 years old, and the median loss was $8,000.
Iowa’s Attorney General ran a similar investigation and found 95% of transactions on Bitcoin Depot and CoinFlip machines were fraudulent (https://www.aarp.org/advocacy/crypto-atm-fraud-protections/).
The FBI reports Americans lost more than $388 million to Bitcoin ATM scams in 2025, a 58% increase over 2024 (https://www.ic3.gov/PSA/2026/PSA260515-2).
Bitcoin ATM companies are making almost all of their revenue from victims and scams. Once some States started forcing operators to take basic anti-fraud steps, the business model collapsed, meaning the vast, vast majority of transactions were facilitating scams. Which is why we say, if you’re asked to use a Bitcoin ATM, it’s almost certainly a scam!
Why these machines are the perfect tool for bad actors
Bitcoin ATMs let someone who has never owned cryptocurrency convert cash into crypto in five minutes, with no account setup, no identity verification, and minimal friction. Once that cash becomes crypto, the transaction is irreversible, and the money is gone forever.
The scam pattern is always the same: a bad actor calls pretending to be the IRS, your bank, Microsoft tech support, or a family member in trouble. They create a heightened emotional state and sense of urgency. They tell you to withdraw cash. They direct you to a specific Bitcoin ATM. They send you a QR code (which directs the funds to their wallet). They stay on the phone the whole time. Then your money is gone.
What to do
Never use a Bitcoin ATM. For most people, there’s no legitimate reason to use one.
Talk to your family today. Especially older relatives. Tell them: no legitimate person, business, or government agency will ever ask you to pay through a Bitcoin ATM. If anyone tells you to, it’s almost certainly a scam.
Download and use Rebound AntiScam! You can sign up to be an Alpha Tester here to get early access to our Scam Protection software. This is an App that runs on your device and alerts you when it detects an inbound scam.
At Rebound, we’re building tools to protect families from exactly this kind of scam. Follow along as we build.
Stay Safe!
Tate